[New York Stock Market] Three Major Indexes Rise... S&P 500 and Nasdaq See Longest Rally in 2 Years

The three major indices of the U.S. New York stock market all closed higher on the 7th (local time), extending their rebound trend amid a decline in U.S. Treasury yields. The S&P 500 and Nasdaq indices set their longest winning streaks in nearly two years.

On the day at the New York Stock Exchange (NYSE), the blue-chip-focused Dow Jones Industrial Average rose 56.74 points (0.17%) from the previous session to close at 34,152.60. The large-cap-focused S&P 500 index increased by 12.40 points (0.28%) to 4,378.38, and the tech-heavy Nasdaq index closed up 121.08 points (0.9%) at 13,639.86.

The Nasdaq index rose for eight consecutive trading days, and the S&P 500 for seven consecutive trading days, marking their longest winning streaks since November 2021, nearly two years ago. The Dow Jones index also rose for seven consecutive trading days, setting its longest winning streak since July.

[Image source=Reuters Yonhap News]

Investors awaited public remarks from Jerome Powell, Chair of the U.S. Federal Reserve (Fed), and John Williams, President of the New York Federal Reserve Bank, on the 8th, trying to gauge the direction of interest rates. Meanwhile, U.S. Treasury yields declined, leading to a strong rally in tech stocks.

On the day, Microsoft (1.12%), Apple (1.45%), and Amazon (2.13%) closed up by 1-2%, while AMD (1.52%), Broadcom (1.93%), and Intel (2.16%) recorded gains around 2%. Software company Datadog surged 28.47% on strong quarterly earnings forecasts, and Uber rose 3.70% despite third-quarter results falling short of market expectations.

On the other hand, major blue-chip stocks such as U.S. energy company Chevron (-1.76%), aircraft manufacturer Boeing (-0.08%), and the largest U.S. construction machinery maker Caterpillar (-1.14%) declined.

On the day, the 10-year U.S. Treasury yield fell 0.89% to 4.572%, and the 30-year yield dropped 0.94% to 4.738%. The 2-year yield, which is sensitive to monetary policy, declined 0.21% to 4.919%. Monna Mahajan, Chief Analyst at Edward Jones, interpreted, "Growth stocks are showing a bigger rebound following the decline in Treasury yields," adding, "Signs of stabilization in international oil prices have also eased inflation concerns, boosting investor sentiment."

[Image source=Reuters Yonhap News]

Some market participants expect this rally to continue through the end of the year and into next year. HSBC forecasted, "If the U.S. Federal Reserve shifts its monetary policy and avoids a recession, global stock markets are ready to deliver double-digit gains next year." Sam Stovall, Chief Investment Strategist at investment firm CFRA, predicted further gains, saying, "Looking at the past 30 years of U.S. stock market trends, the S&P 500 has averaged a 13% rise in the nine months following the end of a rate hike cycle."

Solita Marcelli, Chief Investment Officer (CIO) for the Americas at UBS, analyzed, "Recent market movements align with our view that investor pessimism was excessive," adding, "A foundation has been laid for major stock indices to maintain positive momentum over the next 6 to 12 months."

However, there are also forecasts that the November rally may be short-lived. Rob Ginsburg, analyst at Wolfe Research, said, "Since the July peak, the U.S. stock market has shown a pattern of repeating highs and lows on a monthly basis," and added, "This rally is likely to end in the early part of this month." Pawad Rajakzada of Citi Index pointed out, "As concerns about the macroeconomy grow, investors are watching whether the market rally will continue to climb the 'wall of worry.'"

Meanwhile, international oil prices fell more than 4% due to concerns over demand slowdown amid decreased exports from China. On the day at the New York Mercantile Exchange (NYMEX), the December delivery West Texas Intermediate (WTI) crude oil price closed down $3.45 per barrel (4.27%) at $77.37. This was the largest daily drop since October 4 and the lowest closing price since July 21.